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It's always worthwhile to think about the millions of bucks that are weighting the choices we make in the marketplace - especially some of the choices we hold near and dear. Our very self-images are involved - and we take those very seriously indeed:

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Ford, Toyota set sights on hip hop crowd
GM steers clear: Ford concept 'has a lot of downtown Detroit in it'

Robert Thompson
Financial Post


Wednesday, January 07, 2004

TOYOTA'S SCION XB: The new model used guerrilla marketing and has created its own magazine about "a look at life at the intersection."


DETROIT - With a pumping sound system kicking out the latest beats and flashy models dressed totally in black, it is almost possible to overlook the European-looking cars spinning in the middle of the room.

But unlike many of the cars at the other booths at the Detroit auto show, Toyota Motor Corp.'s new Scion isn't being marketed to middle-aged men.

While its sporty features, European styling and ability to be customized makes it stand out from other cars at the crowded North American International Auto Show, the Scion is also unique as being one of the first automobiles in recent memory to be targeted at younger car buyers utilizing an urban marketing style.

From jeans to soft drinks, savvy marketers are borrowing from American urban culture to sell their wares to those in their early 20s. According to Business Week magazine, one-quarter of all discretionary spending in the U.S. today is influenced by hip-hop music.

Toyota is only the latest company to try and capitalize on the trend. As part of its campaign, Scion has used non-traditional marketing to try to attract a younger crowd. The company has rented night clubs and hired disc jockeys in order to entice potential buyers.

And while most car manufacturers hand out glitzy brochures with glamorous photos of their cars, Scion used guerrilla marketing and created its own magazine about "a look at life at the intersection."

While the car is not available in Canada, Toyota has sold 10,000 of the cars in California since they were first launched in June, 2003. "The product evokes a higher degree of emotion than other cars," says Brian Bolain, national marketing and promotions manager for Scion. "And we've been very successful in allowing personalization. We don't define the car -- we let you do that."

Part of the move by carmakers toward the hip-hop/urban market has happened organically, as celebrities found themselves drawn to certain vehicles. For example, Los Angeles Lakers' star Shaquille O'Neal can be found driving a Cadillac's Escalade with its 24-inch designer wheels, while Big Boi, of rap duo Outkast, prefers an even larger Hummer H2.

At the auto show yesterday, the biggest indicators of the trend toward urban culture could be seen in the so-called "tuners" exhibits where manufacturers displayed accessories that could be used to enhance the performance and look of many cars.

North American carmakers are still trying to find a way to hook into the urban crowd. J Mays, vice-president of design for Ford Motor Co., says that while his company has not created cars specifically for the hip hop crowd, the gritty urban feel inherent in many of Ford's cars means they have been a hit with those on the cutting edge. Mr. Mays points to Ford's 427 Concept, debuted at last year's auto show, as an example of a car that grew out of an urban setting. "It had a lot of downtown Detroit in it," he says. "You could imagine that hip hop crowd driving that car through downtown with smoke coming out of manhole covers or Joe Pesci driving the car with a body in the trunk. Is that actually going to happen? No, but it is a very appealing fantasy."

While General Motors Corp. has seen its Cadillacs and Escalade SUVs take off in California, Bob Lutz, the company's vice-chairman of design, says: "There is no point in creating youth cars because even if the car costs US$16,000, 18-year-old kids can't afford that," he says. "And 18-year-old kids don't want really goofy looking cars that say I'm young so I buy something crazy looking."

He says teenagers and those in their early 20s buy used cars because they are more affordable. With that in mind, Mr. Lutz says it makes little sense to use hip hop culture to market automobiles to the over-40 set.

"They are not going to go buy some crazy thing that is advertised with hip hop stuff," he says. Mr. Lutz points out that Honda Motor Co.'s Element, which was aimed at the twenty-something crowd, has actually largely been sold to traditional car buyers who are in their 40s.

"It is also so fast changing. By the time a trend finds its way into suburban culture, it has already moved on," says Mr. Lutz. "I don't think you can market your way into the cool culture. As we imagine from our teens, our most embarrassing moments were when we had our friends over and our parents tried to sound real cool."

Mr. Mays agrees, saying that design authenticity will create the sort of viral marketing that sells cars to a younger generation.

"I'm not suggesting we are going to start hanging out with hip hoppers and saying, 'Hey guys, we want to be part of your lives,'" he explained.

"I'm saying there is a certain urban toughness in the vehicles that we do that appeals to those people. I'm saying some of the values that are inherent in our vehicles -- like the Mustang -- will appeal to that crowd."

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